The effect of long-term customer relationships and customer-related business uncertainty on the performance of logistic service providers

Abstract

This research aims to evaluate the relationship between the operational and financial performance of logistic service providers (LSPs) and three relevant factors: The focus on long-term relationships with customers, the information technology capabilities, and the technology uncertainty of the LSPs' customers. The research aims to answer if there are direct positive relationships between operational and financial performance, and long-term relationships with customers and their technology uncertainty. Furthermore, it seeks to determine if IT capabilities mediate these effects. The research is based on survey data collected in four diverse locations: Finland, Russia, Panama, and Puerto Rico each representing distinct stages of logistics capability development. The results are derived by using structural equation modelling (SEM) and they indicate that IT capabilities play a mediating positive effect for the financial performance factor. Furthermore, technology uncertainty had a direct strong positive correlation with the operational performance and information technology capabilities did not add significant affects to the operational performance.